Central Eolica Jau

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A partnership of the Portuguese company Energias de Portugal (51%) and the Chinese state-owned company China Three Gorges Corp. (49%) was granted the authorization to build four wind power plants located in the state of Rio Grande do Norte, municipality of Jandaira (98.7 MW in total capacity). The 35-year contracts were signed with the regulatory agency ANEEL starting in September 2014. The company created the special purpose company Central Eolica Jau S.A. to manage the following power plants: EOL Aroeira (32.9 MW) EOL Umbuzeiros (32.9 MW) EOL Jerico (32.9 MW) The total investment in the power plants was estimated at US$ 98.6 million (BRL 313.5 million). Construction works commenced in February 2017, and were in its final stages by June 2017. Financing information was not disclosed. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. EOL Aventura I, Aroeira, Umbuzeiros and Jerico won the public bidding that took place in December 2013 by offering an average tariff of US$ 46.3/MWh (BRL 108.9/MWh). The project companies signed 20-year power purchase agreements with the several electricity distribution companies. The sponsors were granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures.